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Correction: Nov. 3 Con-way Freight story
By The Associated Press | 05 Nov 2008 | 02:40 PM ET
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In a Nov. 3 story about Con-way Freight closing service centers, The Associated Press erroneously reported the number of employees at the Con-way Inc. division. The subsidiary has 20,800 workers, not 27,100, which is the total number of people employed by the parent company.

A corrected version of the story appears below.

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ANN ARBOR, Mich. (AP) — Con-way Freight, a unit of trucking company Con-way Inc., said Monday it is closing 40 service centers across the country to cut costs.

The less-than-truckload carrier said the freight normally handled at those locations will be redistributed to 100 other locations. The 40 service centers are expected to be shuttered by early December. At that time, the company will operate 303 service centers across the U.S. and Canada.

The move, along with other changes to improve network efficiency, are expected to save Con-way Freight about $30 million to $40 million per year.

The company is also adjusting routes and planning for nightly intercity line-haul operations that will reduce the mileage traveled by freight and increase direct deliveries.

The company said about 75 percent of affected workers will be given opportunities for work at other nearby locations.

Con-way Freight said it expects it will cut its work force by about 1 percent because of the closures. Con-way Freight employs about 20,800 workers.

"These types of changes are never easy, but they are necessary for us to advance our mission to provide the best LTL service in the market," said Con-way Freight President John G. Labrie. "This is the right decision at the right time for Con-way Freight. It is one that ultimately will help insure that we continue to provide stable careers for our employees, enhance shareholder value and improve industry- leading service for our customers."

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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